Saunders has been a Forest Labs board member since 2011. The company announced last week he is slated to take its helm as president and CEO on Oct. 1.

A letter Forest Labs filed with the Securities and Exchange Commission offers Saunders the post for a base salary of $1.3 million a year with a chance to earn cash bonuses that would more than triple the base amount.

In June, Forest Labs announced an agreement with activist investor Carl Icahn to seat Icahn Capital LLP managing director Vincent Intrieri on its board. In exchange, Icahn agreed not stage proxy fights for control of Forest Labs as he had in 2010 and 2011, Forest Labs said in a June 11 SEC filing.

Icahn last week issued a statement praising Forest Labs selection of Saunders as its next chief executive.